Collier Realtors group: Pending sales climb 10%
LIZ FREEMAN
The inventory of properties for sale in Collier County increased in February and prices held steady, a sign that buyers have more options, according to the latest real estate report.
At the same time, overall pending sales in February jumped 10 percent and closings shot up 18 percent compared to last year, according to the NABOR report for February. The data does not include Marco Island.
Condominiums in the $300,000 to $500,000 price range were the bright spot in pending sales and condos in the $500,000 to $1 million category hit the sky with a 75 percent increase in closings.
Property listings last month climbed to 6,466 homes, a 16-percent boost compared to inventory of 5,577 the same month in 2016. Condominiums dominated with buyers having 3,207 on the market compared to 2,599 the year before, which was a 23-percent boost in inventory.
High end condo buyers had the largest stock of 284 condos in the price range of $1 million to $2 million to consider, almost double the number compared to 198 high end options on 2016. The bulk of the luxury condos available are in North Naples.
There were 613 closings last month compared to 518 last year in February. Pending sales last month stood at 1,092 for a 10 percent boost compared to 993 a year ago.
Overall median prices among closings rose just 3 percent to $333,000 last month compared to $323,000 the year before.
The median prices of single family homes that closed slipped 5 percent to $402,000 from $45,000 a year ago.
The area hardest hit was North Naples, which experienced a 29 percent decline in closed prices to $650,000, compared to $917,000 last year at the same time. On the flip side, homes in Ave Maria/ Immokalee enjoyed a 29 percent price increase at closing to $287,000. A year ago, the median closing price in Ave Maria stood at $222,000.
More Buyers Choose Conventional Mortgage Loans to Purchase Their Home
Naples, Fla. (November 18, 2016) – Over 44 percent of homes purchased in October used conventional financing methods (e.g., mortgages), according to a report released by the Naples Area Board of REALTORS® (NABOR®) that detailed activity in the greater Naples housing market during October 2016. The October 2016 Market Report, which tracks home listings and sales within Collier County (excluding Marco Island), showed a gradual – but continuous – decline in cash sales with growth in conventional sales during the last 12 months.
In October 2015, cash sales accounted for nearly 65 percent of all homes sales in Naples, whereas in October 2016, cash sales accounted for only 56 percent of all homes sales in Naples. Interestingly, homes purchased in the $300,000 to $500,000 price category in October reflected the highest percentage of conventional sales (60 percent) of all the price categories reported.
“Increased use of conventional mortgages in October may be an indication of increased consumer confidence coupled with a better lending environment,” said Rick Fioretti, NABOR® President and Broker Associate with Berkshire Hathaway Home Services Florida Realty. “In October 2014, only 32 percent of all home sales used conventional financing. In October 2015, conventional financing increased to 35 percent of overall sales.”
The October 2016 Market Report showed overall pending sales decreased 13 percent to 702 pending sales in October 2016 from 807 pending sales in October 2015. Interestingly, overall pending sales in the $500,000 to $1 million price category actually increased 14 percent to 125 pending sales in October 2016 from 110 pending sales in October 2015. Likewise, pending sales of condominiums in the $500,000 to $1 million price category increased 30 percent to 57 condominiums in October 2016 from 44 condominiums in October 2015. The increase in pending sales extended to the single-family home market as well, in which both the $300,000 to $500,000 price category and $500,000 to $1 million price category increased 3 percent.
In the closed sales category, the October 2016 Market Report showed overall closed sales decreased 7 percent to 556 closed sales in October 2016 from 601 closed sales in October 2015. However, closed sales of condominiums in the $1 million to $2 million price category increased 80 percent to 9 condominiums in October 2016 from 5 condominiums in October 2015. And closed sales of single-family homes in the $300,000 to $500,000 price category increased 21 percent from 120 single-family homes in October 2016 from 99 single-family homes in October 2015.
For October, the overall median closed price increased 6 percent to $320,000 in the 12-months ending October 2016 from $302,000 in the 12-months ending October 2015. Conversely, the overall median closed price for homes above $300,000 did not reflect a recordable change. Homes in the $300,000 and below price segment, which experienced a 10 percent increase to $215,000 in the 12-months ending October 2016 from $195,000 in the 12-month ending October 2015, is once again responsible for driving the overall median closed price increase.
The NABOR® October 2016 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® October 2016 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
| CATEGORIES |
October 2016 |
October 2015 |
CHANGE |
| Total homes under contract (pending sales) |
702 |
807 |
-13% |
| Total closed sales |
556 |
601 |
-7% |
| Median closed price |
$315,000 |
$290,000 |
9% |
| Total active listings (inventory) |
5,426 |
3,903 |
39% |
| Average days on market |
85 |
74 |
15% |
| Single-family closed sales |
295 |
310 |
-5% |
| Single-family median closed price |
$375,000 |
$385,000 |
-3% |
| Single-family inventory |
2,849 |
2,210 |
29% |
| Condominium closed sales |
261 |
291 |
-10% |
| Condominium median closed price |
$240,000 |
$230,000 |
4% |
| Condominium inventory |
2,577 |
1,693 |
52% |
Geographically, inventory in the Naples Beach (34102, 34103, 34108) and North Naples (34109, 34110, 34119) areas increased the most in October. In the Naples Beach area, single-family home inventory rose 25 percent to 567 single-family homes in October 2016 from 454 single-family homes in October 2015, and condominiums increased 71 percent to 655 condominiums in October 2016 from 384 condominiums in October 2015. For North Naples, single-family home inventory rose 35 percent to 878 single-family homes in October 2016 from 650 single-family homes in October 2015, and condominiums increased 64 percent to 734 condominiums in October 2016 from 447 condominiums in October 2015.
“There are plenty of homes to buy and sell in Naples,” said Fioretti, who ends his term as NABOR® President in December. “It’s going to take some time to see how the market will react to the election and the changes in the government, but I believe the challenge we REALTORS® face in the short-term is educating the public on market pricing. The value of a home relates to local sale prices and a realistic price means a rapid sale.”
Isabella 2-story new construction home by London Bay Homes, at Mediterra, Naples.
Photo: mediterranapleslp.com
Click photo for more about the Isabella at Mediterra Naples
Home prices: West still holds most expensive markets
Lack of inventory once again pushed against home prices, causing them to accelerate faster in the third quarter, according to the most recent quarterly report from the National Association of Realtors.
The median existing single-family home price increased in 87% of the 178 measured metropolitan areas. Seven of the top 10 markets with home price increases were in the West, including San Jose, California, where the median home price hit $1 million for the second quarter in a row.
On the other hand, 22 metro areas, about 12%, recorded lower median home prices from than last year.
“Mortgage rates around historical lows and solid local job creation created a winning formula for sustained homebuying demand all summer long,” NAR Chief Economist Lawrence Yun said.
“Unfortunately for house hunters in several of the top job producing metro areas around the country, deficient supply levels limited their options and drove prices higher – especially in markets in the West and South,” Yun said.
The national median single-family home price hit $240,900 in the third quarter, up 5.2% from last year’s $228,900 and last quarter’s $240,700. It just hit the current peak in quarterly median sales price.
Possibly due to lack of inventory, existing home sales including single-family and condos, decreased 2.2% to a seasonally adjusted annual rate of 5.38 million in the third quarter. This is down from 5.5 million in the second quarter, and 0.4% lower than last year’s 5.4 million.
“After climbing to their highest annual pace in over nine years in June, sales sputtered in the third quarter because inventory could not catch up with what was being quickly sold,” Yun said. “Only a decent rebound in September kept the monthly and annual sales declines from being even larger.”
At the end of the quarter there were 2.04 million existing homes available for sale, 6.8% less than last year. The average supply for the quarter was 4.6 months, down from 4.9 months last year.
And yet, despite all of this, affordability is still improved from last year due to higher incomes and lower interest rates. As it stands, a buyer making a 5% down payment would need an income of $51,661, a 10% down payment would require an income of $48,942, and a $43,504 income for a 20% down payment.
In fact, when adjusting for inflation and the amount of purchase power provided by low interest rates, home prices actually dropped in the past 16 years, First American Chief Economist Mark Fleming said in an interview with HousingWire and the Mortgage Bankers Association annual in Boston.
“If mortgage rates start to rise heading into next year, prospective buyers could face weakening affordability conditions in their market unless supply dramatically improves,” Yun said. “That’s why it’s absolutely imperative that homebuilders ramp up the production of more single-family homes to meet demand and slow price growth.”
RISMEDIA, Monday, October 24, 2016— Regional Spotlight—Florida’s housing market reported increased median prices, more new listings and fewer all-cash closed sales in September, according to the latest housing data from Florida Realtors®.
Tight inventory continues to impact the state’s housing market, notes Florida Realtors® Chief Economist Brad O’Connor. Closed sales of single-family homes statewide totaled 22,704 last month, slightly down (0.5 percent) from September 2015. Meanwhile, in the townhouse-condo market, statewide closed sales totaled 8,818 last month, down 3.9 percent compared to a year ago.
“Florida’s economy continues to grow, resulting in improving jobs and incomes for workers across the state,” says 2016 Florida Realtors® President Matey H. Veissi, broker and co-owner of Veissi & Associates in Miami. “In turn, that is generating interest from many would-be buyers who are ready to enter the housing market. However, the latest data shows that a continued lack of inventory—especially in the mid-$200,000 and under range—is affecting those potential homebuyers, leaving them with limited choices and higher prices as a result.”
Similar to previous months, inventory was at a 4.2-months’ supply in September for single-family homes and at a 5.8-months’ supply for townhouse-condo properties, according to Florida Realtors®.
Once again, home sellers continued to get more of their original asking price at the closing table in September: Sellers of existing single-family homes received 96.2 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.8 percent (median percentage).
The statewide median sales price for single-family existing homes last month was $222,500, up 11.3 percent from the previous year, according to data from Florida Realtors® research department in partnership with local Realtor® boards/associations. The statewide median price for townhouse-condo properties in September was $160,000, up 6.7 percent over the year-ago figure.
In September, statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year for the 58th month in a row, Veissi notes.
Closed sales data reflected fewer short sales and cash-only sales in September. Short sales for single-family homes declined 33.8 percent, while short sales for townhouse-condo properties dropped 27.2 percent.
“Even though the number of Florida single-family home sales in September was essentially the same as last year, the composition of this year’s group was quite different —and in a good way,” says O’Connor. “Distressed sales made up only 10 percent of single-family home sales this September, compared to over 19 percent in September 2015, and only 28 percent of sales were all-cash deals this time around, compared to 34 percent last year.
“If our housing markets are going to return to some se3mblance of what many might term ‘normalcy,’ it’s vital that both of these trends continue,” O’Connor adds.
For more information, visit www.floridarealtors.org.
Naples, Fla. (October 20, 2016) – The Naples Area Board of REALTORS® (NABOR®) released its Third Quarter 2016 Market Report, which tracks home listings and sales within Collier County (excluding Marco Island), and it showed overall inventory increased 40 percent with little change in median closed prices. In fact, as reflected in the report, the overall median closed price for homes on the market increased only 4 percent to $312,000 in the 3Q of 2016 from $300,000 in the 3Q of 2015. This was predominately driven by a 9 percent increase in the $300,000 and below price category. Comparatively, all other price categories saw a zero or negative price adjustment.
Upon reviewing the report, NABOR® President and Broker Associate with Berkshire Hathaway Home Services Florida Realty Rick Fioretti said, “a quick analysis of price behavior since December of 2015 shows median closed prices leveled out.” Several broker experts agreed with Fioretti, adding that the pricing trend is a natural reaction to the increase in inventory.
“I think we’re seeing the completion of a cycle that began in 2013,” said Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc. “Prices have remained relatively stable for over a year, and now I’m noticing more competitive value-based pricing as the supply increases.”
Carroll remarked that her business encounters a small herd of listings that are still not moving, and believes ongoing increases in inventory over the next six months will require these sellers to adjust their value perceptions. “The list to sale price ratio is shrinking and this needs to continue if we want to compete with new home construction.”
While both pending and closed sales decreased 14 percent (quarter over quarter), inventory continued to rise in all areas of Collier County during the 3Q of 2016. Overall, inventory rose 40 percent to 5,044 homes in the 3Q of 2016 from 3,606 homes in the 3Q of 2015; with a marked increase in Central Naples, which rose 49 percent to 608 homes in the 3Q of 2016 from 408 homes in the 3Q of 2015.
Inventory increases in the condominium market were also remarkable during the third quarter of 2016. This home type experienced a 53 percent increase in inventory to 2,375 condominiums in the 3Q of 2016 from 1,557 condominiums in the 3Q of 2015.
The NABOR® 3Q 2016 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® 3Q 2016 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
|
CATEGORIES
|
3Q 2016
|
3Q 2015
|
CHANGE
|
| Total homes under contract (pending sales) |
1,942
|
2,270
|
-14%
|
| Total closed sales |
1,889 |
2,187 |
-14% |
| Median closed price |
$312,000 |
$300,000 |
4% |
| Total active listings (inventory) |
5,044 |
3,606 |
40% |
| Average days on market |
86 |
78 |
10% |
| Single-family closed sales |
1,001 |
1,123 |
-11% |
| Single-family median closed price |
$382,000 |
$379,000 |
1% |
| Single-family inventory |
2,669 |
2,049 |
30% |
| Condominium closed sales |
888 |
1,064 |
-17% |
| Condominium median closed price |
$241,000 |
$235,000 |
3% |
| Condominium inventory |
2,375 |
1,557 |
53% |
“Only 23 percent of homes for sale under $300,000 are single-family residences,” said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. “When it’s priced right, it sells.”
NABOR® also released its September 2016 Market Report, which showed activity in September 2016 compared to activity in September 2015 was a mixed bag. For example, while overall pending and closed sales decreased 12 and 19 percent, respectively, median closed prices held steady or decreased in 73 percent of the market in September. In fact, median closed prices for all homes above $500,000 decreased, with a 12 percent decrease occurring in the $2 million and over price category.
The NABOR® September 2016 sales statistics are also presented in chart format, including these overall (single-family and condominium) findings:
|
CATEGORIES
|
September 2016
|
September 2015
|
CHANGE
|
| Total homes under contract (pending sales) |
661 |
749 |
-12% |
| Total closed sales |
566 |
703 |
-19% |
| Median closed price |
$318,000 |
$310,000 |
3% |
| Total active listings (inventory) |
5,044 |
3,606 |
40% |
| Average days on market |
92 |
79 |
16% |
| Single-family closed sales |
301 |
381 |
-21% |
| Single-family median closed price |
$378,000 |
$375,000 |
1% |
| Single-family inventory |
2,669 |
2,049 |
30% |
| Condominium closed sales |
265 |
322 |
-18% |
| Condominium median closed price |
$245,000 |
$235,000 |
4% |
| Condominium inventory |
2,375 |
1,557 |
53% |
Collier, Lee are lacking homes
JUNE FLETCHER | Naples Daily News
Southwest Florida needs to build more new homes to meet local job creation, a new report said.
After analyzing employment and permits, the National Association of Realtors concluded that there’s a shortfall of 13,609 new single-family homes in Cape Coral-Fort Myers, and a shortfall of 3,020 homes in the Naples- Immokalee-Marco Island metro areas.
Yet that pales in comparison with Florida metro areas such as Miami-Fort Lauderdale-West Palm Beach, which the trade group said had a deficit of 118,937 homes to meet the needs of newly hired workers, or Tampa-St. Petersburg-Clearwater, which had a shortage of 39,034 homes.
Using government statistics, the Washington, D.C.-based Realtor trade group analyzed permits and job creation in 117 metro areas nationwide to determine which places had the greatest shortage of new single-family homes.
The metro areas around New York, Dallas, San Francisco, Miami and Chicago topped the list.
Lawrence Yun, NAR’s chief economist, explained that the recession hurt the housing market by accelerating price growth and making it very difficult for buyers to afford a home — especially young adults.
“Without the expected pick-up in
building as job gains rose in recent years, new and existing inventory has shrunk, prices have shot up and affordability has eroded despite mortgage rates at or near historic lows,” he said in the report.
While building has been on fire in Southwest Florida since the recession ended, the 7,315 single-family permits pulled from 2013-15 in Collier County and the 9,462 pulled in Lee County were inadequate to meet the need, the NAR concluded.
That’s because Lee added 36,683 jobs during the period, and Collier added 16,433.
The ratio of employment over total permits was 3.9 for Lee County and 2.2 for Collier.
Historically, a balanced market has a ratio of 1.6, NAR said.
But 80 percent of markets in the country had a ratio higher than that, indicating they were not building enough homes to meet job creation.
Nationally, the average ratio was 3.4, but some places were much higher than that.
Double-digit ratios were found in 10 metro markets: Trenton, N.J. (25.1), San Jose (21), San Francisco (18.2), San Diego (12.3), New York (12.1), Rockford, Ill. (12.1), Miami (11.4), Reading, Pa. (10.3), Springfield, Mass., (10.2) and Hartford, Conn. (10.1).
Meanwhile, 30 markets had ratios below 1.6, indicating they were overbuilt. But only two had negative double- digit ratios: Danville, Ill., (-12) and Binghamton, N.Y. (-15.3) For home builders, the need to construct more housing is welcome news, even as the industry faces slowing demand in a nervous election year.
A separate report released Monday by the National Association of Home Builders said its index of builder confidence jumped 6 points to 65 in September, the highest level it has been since October.
The index shows builders are optimistic about sales even though they continue to be constrained by shortage of labor and lots, the NAHB said.
